I like the idea of zoning off one system especially since upper floor zone will be used infrequently.

However the major problem with zoning is to qualify the dealer with his experience in this area and that includes proper sizing and type of HVAC, excellent ductwork design,

I assume nice new building and insulation qualities in your home. I wouldn't put Goodman in a dog house. Still a brand long on price and short on quality. But getting better. What other brands are offered?

I would go 95%+ high eff two stage var speed nat gas furnace with min 15 SEER AHRI rated AC condenser.

IMO

Since its custom build I can pick whatever I want and pay the difference. Im in a medium size city and should be able to get any of the major brands. Budget of course is a factor as it usually is so I want what makes sense quality and price wise given the house and location. I dont want builder basic but also think high end is probably over kill.

Given the rates I published does it make sense to do gas over electric?

I can run a fuel cost comparison for you to use as a guide only.

But I need some clarification on your nat gas and electric rates.

All inclusive price

Cost per therm for nat gas

Cost per KWH for electric

Let me know and I'll provide a comparison for you.

IMO

Hmmm. What I posted is everything I can find online. What else would I be looking for on the natural gas? I will download my electric bill and see if there is any other info.
On the insulation this is the spec that all the builders interviewed provide. Its much better then what I currently have.
R38 blown fiberglass ceilings over living areas.
R13 all exterior walls (2x4 construction)
R19 under subfloor and bonus room. (BR is above garage. Foundation is crawl) (current house has 0!)
6 mil poly ground cover in crawl.

From my electric bill

Your Detailed Usage by Month
This Month Last Month Last Year
kWh 2,942 2,231 1,823
Billing Days 33 32 30
Degree Days 1,067 790 670
Charges $302.32 $230.85 $179.09

The TVA Fuel Cost Adjustment this month has increased
your bill by $10.15.
* The Electric Power charge includes a customer charge
of $11.83 and an energy charge of $0.09874 per kWh.

This is be used as a guide only.

Electric $.1035/KWH at 2.75 COP

Nat gas $.0084 cu ft at 95% eff

Cost per 100,000 btu of useable heat

Electric baseboard: $2.73
Heat pump: $1.10
Natural gas: $0.86

IMO

Thank you. I would have thought electric was cheaper to heat with here. Any suggestions on brands and models?

Top brands Carrier/Bryant and Trane/American Std

Rudd/Rheem a notch below.

As said, zoned system is fine as long as you qualify dealer's experience in this area.

IMO

Trying to find someone with an actual gas bill I think I may be missing some costs.

http://www.piedmontng.com/files/pdfs/rates/tn_tariffandserviceregulations.pdf#page2
Lists a commodity cost.

This lists rates plus the franchise % of 6.

http://www.piedmontng.com/files/pdfs/rates/tn_rates_2014-02.pdf

It goes on to say:
BACKUP SERVICE
When gas service is being supplied for use as a Backup Service for the dual-fuel heat pump or for similar use where the Customer's equipment is specifically designed by the manufacturer or is modified by the Customer or others for the purpose of using natural gas as the equipment's backup energy source, there shall be payable monthly in addition to all and other charges under this Rate Schedule a Backup Service Demand Charge individually determined for each Customer based upon the Customer's applicable gas equipment input rating. The per therm Demand Charge shall be equal to the unit Demand Charge applicable to the CompanyâÂÂs firm industrial rate schedules.
Input shall be based upon individual Customer's applicable gas equipment rating in:
BTU/Hour x 10 hours = TH 100,000 BTU

Call the nat gas distributor tomorrow and get your rate. Ask to speak to a residential specialist. Pretty simple.

Good Luck.

I have never heard of back up service from a gas supplier. I think it could mean not having to pay a monthly service charge for your gas connection, but instead only pay for whatever gas you use to supplement the heat pump during the heating season. The draw back may be paying a higher rate.

You don't need a heat pump if you can heat the house for less money with the gas furnace. You can also use gas for domestic hot water, cooking, and drying clothes. This would be significantly cheaper than using electricity.

I will call the gas co tomorrow. I did get a copy of a friends bill who has gas water heater and gas kitchen range and all electric heat.

36 Therms
Total bill was $49.17 including the customer charge which the above doc states is fixed $17 but wasnt broke out on bill and Franchise Fee of 6.69% = to 3.08
Average temp was 35.

Obviously not a good comparison with a friend who only heats hot water and has a cooktop that uses nat gas.

You need a bill from a friend who heats with nat gas for a closer comparison.

IMO

Sorry for the confusion. That was just for trying to determine rates not to compare total costs. I will call the gas co tomorrow and hopefully gain some clarity on rates.

Using your friends bill:

$49.17-$17 = $32.17 total gas usage

$32.17/32 therms = $0.89 per therm (includes taxes)

When comparing the operating costs of gas vs. electricity you should subtract out the monthly usage charge to figure out the operating costs.

In my opinion you should get a 95%+ efficiency gas furnace and all gas appliances.